HomeMy WebLinkAbout2011-09-13; City Council; 20676; AMENDMENT CALPERS CONTRACTCITY OF CARLSBAD - AGENDA BILL 10
AB#
MTG.
DEPT.
20,676
9/13/2011
HR
AMENDMENT TO CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM
(CALPERS) CONTRACT IMPACTING LOCAL
MISCELLANEOUS MEMBERS
DEPT. HEAD *••; (!
CITY ATTY. «^ef^'
CITY MGR. (^-^
RECOMMENDED ACTION:
1. Adopt Resolution No. 2011-214 _, a resolution of intention to approve an amendment to
the contract between the Board of Administration of the California Public Employees'
Retirement System (CalPERS) and the City of Carlsbad.
2.Introduce Ordinance No.
miscellaneous members.
CS-157 amending the CalPERS contract impacting local
ITEM EXPLANATION:
Under the City's contract with CalPERS, all miscellaneous employees (i.e., those represented
by the Carlsbad Police Officers' Association (CPOA) who are non-sworn, those represented by
the Carlsbad City Employees' Association (CCEA), non-safety employees in the unrepresented
management group and elected officials)We combined into one "miscellaneous" contract.
On the dates listed below, the City Council approVe'd resolutions which directed staff to initiate
an amendment of the City's safety contract with CalPERS to create a 2nd tier retirement plan
that includes the 2% at 60 retirement benefit (California Government Code Section 21353) and
Three Year Final Compensation benefit (California Government Code Section 20037) for
employees entering membership for the first time in a City of Carlsbad miscellaneous
classification after the effective date of the amendment. This Council direction affected the
following bargaining units.
Date City Council Directed
Amendment to CalPERS Benefit
June 21, 2011
August 23, 2011
Employee Group
CCEA
CPOA
Elected officials and Management employees are considered non-safety employees and are
subject to the same retirement formula as that provided to employees represented by the
CCEA. As such, the future retirement plan changes were approved for elected officials and
non-safety management employees on June 21, 2011.
DEPARTMENT CONTACT: Employee name 760-602-2441 Debbie.Porter@carlsbadca.gov
FOR CITY CLERKS USE ONL Y. */
COUNCIL ACTION: APPROVED J&.
DENIED D
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER - SEE MINUTES D
Page 2
The City Council needs to take two actions to implement the proposed revisions to the
retirement contract: (1) adopt a Resolution of Intention and (2) introduce the Ordinance to
amend the contract. Adoption of the final Ordinance cannot be earlier than 20 days after
adoption of the Resolution of Intention. Therefore, adoption of the final Ordinance is scheduled
for October 11, 2011. The effective date of the Ordinance would be November 10, 2011. The
effective date of the contract amendment would be November 27, 2011.
FISCAL IMPACT:
There is no immediate fiscal impact associated with implementing the changes to the retirement
provisions as described above. It is estimated that the City will realize long-term savings of
$5,100,000 over the next ten years as a result of this action, but employee turnover and other
factors will influence the extent of this projected savings.
ENVIRONMENTAL IMPACT:
The proposed action does not qualify as a "project" under the California Environmental Quality
Act (CEQA) per State CEQA Guidelines Section 15378 as it does not result in a direct or
reasonably foreseeable indirect physical change in the environment.
EXHIBITS:
1. Resolution No. 2011"214 including its Exhibit
2. Ordinance No. cs-157
3. Certification of Governing Body's Action
4. Certification of Compliance with Government Code Section 20475
1 ORDINANCE NO. CS'157
2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE
3 CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
5 WHEREAS, the City Council authorized the City to initiate an amendment of the
6
City's contract with CalPERS to provide a 2nd tier retirement plan that includes the 2% at
7
60 retirement benefit (Section 21353) and Three Year Final Compensation benefit8
(Section 20037) for employees entering membership for the first time in a City of
j0 Carlsbad miscellaneous classification effective November 27, 2011.
11 NOW, THEREFORE, the City Council of the City of Carlsbad ordains as follows:
12 That an amendment to the contract between the City Council of the City of
13 Carlsbad and the Board of Administration of the California Public Employees'
14 Retirement System is hereby authorized, a copy of said amendment marked "Exhibit" to
15 Resolution No. 2011-214
16
The Mayor of the City of Carlsbad is hereby authorized, empowered, and
17
directed to execute said amendmeni ror and on behalf of said Agency.
18
This ordinance shall be effective thirty days after the date of its adoption; and the
20 City Clerk shall certify the adoption of this ordinance and cause it to be published at
21 least once in a newspaper of general circulation in the City of Carlsbad within fifteen
22 days after its adoption.
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INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on
the 13th day of September 2011, and thereafter.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the
City of Carlsbad on the day of , 2011, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED AS TO FORM AND LEGALITY
RONALD R. BALL, City Attorney
MATT HALL, Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk
(SEAL)
RESOLUTION NO. 2011-214
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES1 RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF CARLSBAD
WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement System
by the execution of a contract, and sets forth the procedure by which said
public agencies may elect to subject themselves and their employees to
amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption by
the governing body of the public agency of a resolution giving notice of its
intention to approve an amendment to said contract, which resolution shall
contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20475 (Different Level of Benefits).
Section 21353 (2% @ 60 Full formula) and Section 20037
(Three-Year Final Compensation) are applicable to local
miscellaneous members entering membership for the first
time in the miscellaneous classification after the effective
date of this amendment to contract.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of intention to approve an amendment to the
contract between said public agency and the Board of Administration of the
Public Employees' Retirement System, a copy of said amendment being
attached hereto, as an "Exhibit" and by this reference made a part, hereof.
By:.
Pressing Officer
Mayor
Title
9/13/11
Date adopted and approved
(Amendment)
CON-302 (Rev. 4/96)
CalPERS
EXHIBIT
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Carlsbad
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective
January 1, 1956, and witnessed December 23, 1955, and as amended effective July 1,
1957, January 1, 1959, March 5, 1959, March 18, 1975, April 1, 1975, August 18, 1977,
June 21, 1980, January 1, 1981, June 21, 1982, November 22, 1982, June 26, 1989,
November 16, 1990, July 3, 1992, November 3, 1993, June 30, 1995, June 3, 1996,
January 1, 1997, June 14, 1997, June 25, 2001, December 22, 2003, December 20,
2004 and October 4, 2010 which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 16 are hereby stricken from said contract as executed
effective October 4, 2010, and hereby replaced by the following paragraphs
numbered 1 through 17 inclusive:
1. All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 60 for local miscellaneous members and age 50 for local safety
members.
PLEASE DO MOT SIGN "EXHIBIT ONLY"
2. Public Agency shall participate in the Public Employees' Retirement
System from and after January 1, 1956 making its employees as
hereinafter provided, members of said System subject to all provisions of
the Public Employees' Retirement Law except such as apply only on
election of a contracting agency and are not provided for herein and to all
amendments to said Law hereafter enacted except those, which by
express provisions thereof, apply only on the election of a contracting
agency.
3. Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CalPERS) and its
trustees, agents and employees, the CalPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
demands, actions, losses, liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorneys fees
that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under
the Public Agency's prior non-CalPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CalPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
formulas provided under this Contract and provided for under
the California Public Employees' Retirement Law.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CalPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CalPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
PLEASE DO NO
4. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
local miscellaneous members).
5. In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
a. SENIOR INSTRUCTOR/LIFEGUARD HIRED AFTER NOVEMBER
3, 1993.
6. This contract shall be a continuation of the contract of the Carlsbad
Municipal Water District, hereinafter referred to as "Former Agency". The
accumulated contributions, assets and liability for prior and current service
under the Former Agency's contract shall be merged pursuant to Section
20508 of the Government Code. Such merger occurred February 17,
1992.
7. The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment before and not on or after December 20, 2004 shall be
determined in accordance with Section 21354 of said Retirement Law,
subject to the reduction provided therein for service on and after June 1,
1958, the effective date of Social Security coverage, and prior to
December 31, 1980, termination of Social Security, for members whose
service has been included in Federal Social Security (2% at age 55 Full
and Modified).
8. The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment on or after December 20, 2004 and not entering membership
for the first time in the miscellaneous classification after the effective date
of this amendment to contract shall be determined in accordance with
Section 21354.3 of said Retirement Law, subject to the reduction provided
therein for service on and after June 1, 1958, the effective date of Social
Security coverage, and prior to December 31, 1980, termination of Social
Security, for members whose service has been included in Federal Social
Security (3% at age 60 Full and Modified).
9. The percentage of final compensation to be provided for each year of
credited current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract shall be determined in
accordance with Section 21353 of said Retirement Law (2% at age 60
Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member entering
membership in the safety classification on or prior to October 4, 2010 shall
be determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
11. The percentage of final compensation to be provided for each year of
credited current service as a local safety member entering membership for
the first time in the safety classification after October 4, 2010 shall be
determined in accordance with Section 21362 of said Retirement Law (2%
at age 50 Full).
12. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance).
b. Section 20425 ("Local Police Officer" shall include employees of a
police department who were employed to perform identification or
communication duties on August 4, 1972 and who elected to be
local safety members).
c. Section 20965 (Credit for Unused Sick Leave).
d. Section 20042 (One-Year Final Compensation) for those local
safety members entering membership on or prior to October 4,
2010 and those local miscellaneous members entering membership
on or prior to the effective date of this amendment to contract.
e. Section 21427 (Improved Nonindustrial Disability Allowance) for
local miscellaneous members only.
f. Section 21024 (Military Service Credit as Public Service).
g. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members and local police members only.
h. Section 21583 (Additional Opportunity to Elect 1959 Survivor
Benefits).
i. Section 20434 ("Local Fire Fighter" shall include any officer or
employee of a fire department employed to perform firefighting, fire
prevention, fire training, hazardous materials, emergency medical
services, or fire or arson investigation services as described in
Government Code Section 20434).
j. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire
members only.
k. Section 20475 (Different Level of Benefits). Section 21362 (2% @
50 Full formula) and Section 20037 (Three-Year Final
Compensation) are applicable to local safety members entering
membership for the first time in the safety classification after
October 4, 2010.
Section 21353 (2% @ 60 Full formula) and Section 20037 (Three-
Year Final Compensation) are applicable to local miscellaneous
members entering membership for the first time in the
miscellaneous classification after the effective date of this
amendment to contract.
13. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
August 18, 1977. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
14. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
15. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members and local police members.
b. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local fire members.
c. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required by law.
d. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
16. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
17. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen days after the
end of the period to which said contributions refer or as may be prescribed
by Board regulation. If more or less than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
''
B. This amendment shall be effective on the day of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY
BY
DARRYL WATSON, CHIEF o
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
PRESIDING OFFICER
Witness Date--
Attest->"
AMENDMENT ER# 338
PERS-CON-702A
Clerk
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
public Agency Contract Services
P.O. Box942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 20475
I hereby certify that the Ci-k
governing body)
Coirl s
of the
(public agency)
has fully discharged all of the obligation imposed by Chapter 10 (commencing with
Section 3500) of Division 4 of Title 1, Government Code.
Mattt Hall
Mayor
Title
itneSS /Ci-ty Clerk
9/13/11
Date
PERS-CON-30 (Rev. 1/96)K*11X
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
p ublic Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
A
1
CoOQ(*x\ __ of the
(governing body)
CorisbaJ
(public agency)
OH 9/13/11 .
(date)
Jrk/Secretal^
City Clerk
Title
^ oV t«i«\«'<£--?<r\
~ ^ :i^-~>^$£gs^: ^ '--
PERS-CON-12 (rev. 1/96)
,,- .„ _, CITY OF
^CARLSBAD
Office of the City Clerk www.carlsbadca.gov
September 15, 2011
CALPERS
ATTIM: Irene Ho
Actuarial and Employer Services Branch
Public Agency Contract Services
PO Box 942709
Sacramento CA 94229-2709
RE: AMENDMENT TO CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT
Please be advised that the City Council of the City of Carlsbad at its meeting held September 13, 2011,
approved Resolution No. 2011-214, a Resolution of Intention to approve an amendment to the contract
affecting miscellaneous classified members between the California Public Employees' Retirement
System and the City of Carlsbad.
The Resolution, Certification of Compliance with Government Code Section 20475 and the Certificate of
Governing Body's Action are enclosed.
Sherryfreisinger
Senior Deputy Clerk
Enclosures
Records Management
1200 Carlsbad Village Drive, Carlsbad, CA 92008-1949 T 760-434-2808 ®